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China to Meet WTO Challenge with More Efficient Production: Nobel Prize Laureate
China will have to effectively improve its productivity in order to meet the challenge brought by entry into the World Trade Organization, said a Nobel Prize laureate in Beijing on Monday, December 11.
Robert Mundell, a Nobel Prize winner for economics in 1999, was granted an honorary Ph.D. in economics Monday by the Beijing-based People's University of China.
After elaborating on the general trends of the world economy, Mundell pointed out that the new economy and information revolution have cut the cost of spreading information, and largely improved the efficiency of economic activities of businesses, families and the government, which promoted the country's economy moving toward the integration of globalization, he added.
China will acquire technology and more investment once it joins the WTO, said Mundell.
As a result of being open to the rest of the world, the competition will become even more intense.
Chinese businesses should quickly access to advanced technology, lower production costs, and improve their productivity to meet the challenge.
The Nobel Prize laureate hailed China's stable monetary policy as saying that a fluctuating exchange rate, which will have strong impact on overseas investment, is harmful to the economic development.
He believed that China will become more influential through its economic modernization. It took China only two decades to become a major component of global trade and finance.
Mundell, a renowned expert on monetary theory, said that the launch of the Euro altered the international monetary system as well as macro-economic policies.
He suggested that in the future China should unite with other Asian countries to have a bigger say in the world's monetary system and to upgrade the regional economic power rapidly.
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